Stay up-to-date with information about your legal benefits

Legal benefits are one of those things you hope you never need. But, just in case, ADP TotalSource® has you covered with Employment Practices Liability Insurance (EPLI) coverage, the Legal Defense Benefit (LDB), and support in responding to charges from the Equal Employment Opportunity Commission (EEOC) and other similar administrative agencies.

Please take a minute to review the following important information, including the changes described below.   

Employment Practices Liability Insurance (EPLI)

The EPLI coverage provided offers up to an aggregate $1M dollars per year for covered employment claims brought by a worksite employee or an applicant during the term of the Client Services Agreement (CSA). A new annual policy period begins August 1, 2025. With this new policy period, the EPLI coverage will now be provided through Federal Insurance Company (“Chubb”) instead of Zurich American Insurance Company.

Retentions

The self-insured retentions/deductibles remain the same, as identified below:

o   Limits of Insurance:

§   Each client company sublimit: $1,000,000 each insured event & annual aggregate

o   Self-insured retention/deductible for settlements and judgments:

§   $ 25,000 all states other than California

§   $ 200,000 California

o   Self-insured retention/deductible for defense costs:

§   $ 75,000 all states other than California

§   $ 200,000 California

Coverage

Please note that this year’s policy includes the following updates:

The Insuring Agreement of the previous policy stated:

All Claims arising out of  the  same  Insured  Event  and  all  Insured  Events that have as a common nexus any  fact,  circumstance,  situation,  event, transaction, cause or series of causally connected facts, circumstances, situations, events, transactions or causes, shall be deemed one Claim, and all such Claims shall be deemed to be first made when the earliest of such Claims is first made, whether before or during the Policy Period. Only the policy in effect at the time such Claim is first made shall apply to such Claim.

             Effective August 1, 2025, this clause has been modified to state:

All Claims based upon, arising from, or in consequence of the same or related series of facts, circumstances, transactions, situations, events, practices, policies, or Insured Events shall be deemed one Claim, whether first made before or during the Policy Period. Only the policy in effect at the time such Claim is first made shall apply to such Claim.

The policy language now clarifies that the following are excluded from, and would not be covered under, the EPLI policy:

Bodily Injury: This policy does not cover that portion of any Loss Amount(s) or costs arising out of or associated with any Claim for bodily injury, sickness, disease or death of any person or damage to or destruction of any tangible property, including the loss of use thereof, whether or not it is damaged or destroyed.

Please note, Bodily Injury claims are generally covered under a workers compensation insurance policy. Under the Client Services Agreement, ADP TotalSource continues to maintain workers compensation coverage for Worksite Employees. General liability insurance may cover claims for destruction of tangible property. Please speak to your company’s own insurance broker for further information. Claims for retaliation for filing a workers compensation claim remain covered under the EPLI policy.

Occupational Safety and Health: This policy does not cover any obligation, responsibilities, rights or duties under any workplace safety and health law, or any similar federal, state or local statutory or common law, including any amendments thereto, as well as any obligation to maintain a place of employment free from hazards likely to cause physical harm, injury, or death, including the Occupational Safely or Health Act.  This exclusion shall not apply to a Claim brought by a Worksite  Employee(s) alleging Wrongful Termination or retaliation of the claimant by the Insured on account of the claimant's exercise of rights pursuant to any such statute, law, rule or regulation.

Please note, claims for retaliation for raising concerns about workplace safety or heath issues remain covered under the EPLI policy. Continue to work with your assigned Risk and Safety Specialist on risk mitigation strategies for workplace safety and health hazards.

Claims Prior to August 1, 2025

Any prior claims for which coverage was afforded by Zurich will continue to be managed by Zurich.

There have been no further changes to the terms of the EPLI policy. For more information, click here to review an updated Employment Practices Liability Coverage Information Summary on [JH1] this topic. For a copy of the policy, please contact ADPTotalSource@marsh.com. For any additional questions regarding EPLI coverage, please contact Elana Iltcheva with Marsh McLennan, ADP TotalSource’s insurance broker, at Elena.Iltcheva@mmc.com.

Legal Defense Benefit (LDB) Programs

ADP TotalSource protects your organization’s financial interests through our LDB, for which there have been no changes to the program. If a covered claim or lawsuit is filed against your organization, ADP TotalSource will extend the LDB provided all CSA conditions are met, which include but are not limited to contacting ADP TotalSource prior to taking an adverse employment action and following ADP TotalSource’s recommendation(s) regarding the incident from which the claim arose. Upon acceptance of the LDB by your organization, ADP TotalSource will select a skilled employment law attorney to investigate the claim and defend your company. Attorneys’ fees for LDB eligible claims will be paid by ADP TotalSource up to the following amounts:

            Legal Defense Benefit

            Legal Defense Benefit +

*If a covered EPLI claim filed within the State of California results in a settlement or judgment in excess of $50,000, ADP TotalSource will fund the remainder of the applicable Self-Insured Retention/Deductible for Settlements and Judgments above $50,000 for such claim if (i) the requirements for the LDB set forth in your CSA are satisfied with respect to such claim such that you are eligible for the LDB at the time of the applicable settlement or judgment, (ii) you have paid the first $50,000 of the Self-Insured Retention/Deductible for Settlements and Judgments with respect to such claim, and (iii) the CSA is in effect and has not been terminated by either party.  In no event will ADP TotalSource’s payment towards your Self-Insured Retention/Deductible for Settlements and Judgments exceed $150,000.

For more information, click here to review an updated LDB Frequently Asked Questions [JH2] on this topic.

Support with a Written Response to the Equal Employment Opportunity Commission (EEOC) Service

The EEOC is the federal government agency that enforces anti-discrimination laws. If an employee files a charge with the EEOC or state equivalent, the respective agency will send a notice requesting that you respond with a position statement. As part of the Services, ADP TotalSource will assist your organization in the preparation of the written position statement.

You can rest assured that ADP TotalSource is your trusted advisor in human resources management. As our client, our team of professionals will support your organization with strategic compliance guidance, as well as benefits such as EPLI coverage, LDB, and assistance with a written response the EEOC – all services dedicated to help you protect your organization’s financial interests in the event of a claim.

For more information, please contact your HR Business Partner. They will help guide you to optimize your company’s ability to utilize these benefits should the need arise.

The descriptions of the LDB and other related benefits provided by the CSA does not amend, alter, or replace the terms, conditions, exclusions and other provisions of the CSA, unless otherwise indicated, nor do they amend, alter, or replace any applicable laws or regulations.

The descriptions of the insurance coverage provided by this policy do not amend, alter, or replace the terms, conditions, exclusions and other provisions of the policy nor do they amend, alter, or replace any applicable laws, regulations, rating rules, or plan.  The information contained in this document provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation, and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Marsh cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.